Shelf Drilling, Ltd. announces results for the third quarter of 2020 ending September 30.
David Mullen, Chief Executive Officer, commented: “The sequential declines in Revenue and EBITDA during the third quarter of 2020 reflect a number of drilling contracts which were suspended, terminated or not extended as a result of the COVID-19 pandemic and the subsequent deterioration in oil price, the effects of which are impacting the entire drilling industry. At the end of the quarter, however, a total of 30 of our rigs remained under contract. The resilient quarterly EBITDA margin of 31% is the result of our sustained operating performance and very aggressive cost saving measures initiated in April 2020 in response to a challenging market outlook caused by the pandemic. As anticipated, rig demand has further deteriorated with additional pressure on utilization and dayrates due to the on-going market uncertainty. While we expect this situation to persist in the near to medium term, I am also convinced that our proactive steps taken to navigate this pandemic, combined with our best-in-class operating platform and established customer relationships will continue to differentiate us as the international jack-up contractor of choice.”
Third Quarter Highlights
-
Q3 2020 Revenues of $127.4 million, a 17.8% sequential decrease compared to Q2 2020.
-
Q3 2020 Adjusted EBITDA of $39.3 million, representing an Adjusted EBITDA Margin of 31%.
-
Q3 2020 Net Loss of $7.7 million.
-
Q3 2020 Capital Expenditures and Deferred Costs totaled $26.5 million, including $9.9 million associated with rig acquisitions.
-
The Company’s cash and cash equivalents balance at September 30, 2020 was $69.2 million.
-
The Company’s total debt at September 30, 2020 was $1.0 billion, including $55.0 million drawn on the Company’s revolving credit facility.
-
$1.4 billion in contract backlog at September 30, 2020 across 30 contracted rigs.
-
The Company completed the sale of the Trident XIV in Q3 2020 for a $5.5 million gain on sale of assets.
-
In September 2020, the Company paid $3.9 million to settle and terminate its obligations under the bareboat charter agreements with China Merchants & Great Wall Ocean Strategy & Technology Fund.
-
In September 2020, the Company completed an amendment to the revolving credit facility to provide relief from the total net leverage ratio financial covenant from January 1, 2021 until September 29, 2021.
Full Report Here – Shelf Drilling
